We provide integrated mobile, fixed and broadband services in the UK, Ireland, Germany, the Czech Republic and Slovakia. Together, we’re Telefónica Europe, but customers know us as O2.
Telefónica Europe also owns 50% of the Tesco Mobile joint venture business in the UK and Ireland, as well as, the Tchibo Mobilfunk joint venture in Germany. In addition, the group includes the Isle of Man fixed/mobile operator, Manx Telecom.
We have more than 43 million fixed and mobile customers across Europe and 29,000 employees across the Group.
In increasingly competitive European markets, O2 continues to build on a strong, first half performance, where it added over 750 000 mobile customers in the second quarter, with over 60% on contract. So far, during 2008, the Group has added 1.3 million mobile and 416,000 fixed customers. . Non-SMS data revenue continues to grow with €420 million recorded in the first half of 2008, a growth of 39.8% year on year.
The businesses in the UK and Ireland are both established and profitable, with a track record of revenue and customer growth and a strong presence in high-value markets, such as business and mobile data services.
Telefónica O2 UK continues to build on its strong position in the market, posting like for like revenue growth of 11.1% for the quarter and adding 138,000 net contract customers, over 80% higher than the second quarter last year.
In a competitive market, Telefónica O2 Ireland continues to trade well adding 25,000 customers in the first quarter, with 19,000 on contract, one third higher than contract adds in Q2 2007 and maintaining the run rate from the first quarter.
In Germany, we added 568,000 mobile customers during the second quarter, and 1.1 million in the first half, with 45% on contract, which shows we are regaining our momentum in the market. We were particularly pleased with the performance of our partner channels, including HanseNet, Tchibo and Fonic, who combined gained over 260,000 customers in the quarter.
Our Telefónica Deutschland DSL business now has over 1 million unbundled lines, maintaining year on year growth of 3 times, with over 52% growth in fixed wholesale revenues. The total mobile customer base finished the quarter at 13.6 million, representing 17.5% year on year growth.
Across the Czech Republic and Slovakia total revenues for the first half of 2008 were €1,236 million, up 1.1% year on year in local currency. The Czech mobile business continued to be the key driver, with service revenue growth of 4.1% year-on-year in the second quarter. The total fixed and mobile accesses of Telefónica O2 Czech Republic, including Slovakia, stood at 8.5 million, an increase of 0.5% year-on-year, as the growth in Czech mobile and broadband accesses offset the losses in the Czech fixed telephony business and the deactivation of inactive customers in Slovakia. The total number of customers currently subscribing to a bundled product in the Czech Republic amounted to 142,565 at the end of June 2008.
Manx Telecom provides mobile, fixed line and internet services on the Isle of Man to 75,000 customers. It is the pioneer of broadband mobile networks, the platform on which we supply 3G services Europe-wide. Manx Telecom launched Europe's first superfast 3G, in partnership with Lucent Technologies, using HSDPA technology towards the end of 2005. HSDPA offers the possibility of communication speeds up to three times faster than current commercial 3G services.
